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Impact Investment Surge in Europe: 75% of Investors to Boost Allocations

Europe's impact investment scene is booming. Sweden leads the way, but regulatory hurdles remain.

In this image I can see a poster which has so many buildings and text highlighted on it.
In this image I can see a poster which has so many buildings and text highlighted on it.

Impact Investment Surge in Europe: 75% of Investors to Boost Allocations

A new report by Norrsken VC reveals a surge in confidence among impact founders and investors in Europe. 60% of impact investors hold a favorable outlook, with 75% planning to increase their allocations in the next five years. Only 6% intend to invest less.

The report, led by Willem Vriesendorp, founder of Norrsken House in Stockholm, highlights the popularity of industrials and healthcare sectors among venture capitalists and generalist limited partners (LPs). This is due to increased AI-driven efficiency in these areas.

Impact founders and investors ranked Sweden as the most attractive country for impact investments, followed by Spain and the Netherlands. These countries offer supportive impact ecosystems and thriving startup landscapes. Germany and the UK also present attractive opportunities, with Germany benefiting from its industrial strength and clean-tech sector. However, 50% of impact founders cited regulatory differences between EU member states as a barrier to growth.

The report underscores the growing interest and optimism in the impact investment space in Europe. Despite regulatory challenges, the continent's diverse range of attractive markets and sectors is driving increased allocations from investors.

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